On the Option of Chinas Exchange Rate System: Also on the Best Opportunity of RMB toward Floating and Free Exchange

The paper makes a comparative study first on fixed exchange rate system and floating exchange rate system, then discusses the new development of theory of exchange rate system, and finally talks about the option of reform of Chinas exchange rate system: firstly, is that the option of exchange rate is a moving process; secondly, the current exchange rate system does not suited to the need of market economy, and should be transferred into the system of controlled floating exchange rate system. The author believes that the next one or two years are the best opportunity for RMB to be changed into a floating and free exchanged currency.